Risk per trade
Small slices
Every trade gets a stop loss: the price where you exit if you are wrong. Your risk is what you lose if that stop is hit. Professionals keep it to a small, fixed slice of the account, often 0.5% to 2%. At 1% risk you can be wrong 10 times in a row and still have about 90% of your account.
Remember: Bullish idea (expecting a rise) or bearish idea (expecting a fall): the stop comes first either way.
Test yourself
Why risk only about 1% per trade?
A losing streak will not destroy the accountLosing streaks happen to every strategy. Small risk lets you survive them.
"Risk per trade" means…
How much you lose if the stop loss is hitRisk is the planned loss, decided before you enter.
Short interactive lessons and quizzes on real crypto and forex charts. Free to start, no real money involved.
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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.